SECTION A: MINI CASE STUDY (60 MARKS)

Mini Case 1: Awang's Dilemma

Awang was a real craftsman when it came to being a machinist. Awang had learned almost all
that he knew from Daud, his first and only employer. Awang was married and had three young
children. He was 33 years old and had worked for Daud ever since he finished his tour in the
Army. In 12 years, Awang had polished his skills under the watchful and critical eye of Daud.
Daud was quick to recognize Awang's talent for the trade. Awang had a positive attitude about
learning and displayed a drive for perfection that Daud admired. Daud's Machine Shop was a
successful small business. Its success was based mostly on the reputation for quality that had
been established over its 42 years in operation. Daud had come to this country with his new wife,
Salmah, when he was in his late twenties. Now the business was a success, but Daud
remembered the early years when he and Salmah had to struggle. Daud wanted the business to
continue to produce the highest quality craftsman products possible. On a Friday evening, he
called Awang into his office at closing time, poured him a cup of half-day-old coffee, and began
to talk with him about the future."Awang, Salmah and I are getting old and I want to retire. It has
been 42 years of fun but these old hands need a rest. In short, Salmah and I would like you to
buy the business. We both feel that your heart is in this craft and that you would always retain
the quality that we have stood for." Awang was taken aback by the offer. He, of course, knew
Daud was getting older, but had no idea Daud would retire. Awang and his wife, Timah, had
only RM4,200 in the bank. Most of Awang's salary went for the normal costs of rearing three
children. Daud knew Awang did not have the money to buy the business in cash, but he was
willing to take a portion of the profits for the next 15 years and a modest initial investment from
Awang. Awang had, for the past four years, made most of the technical decisions in the shop.
Awang knew the customers and was well respected by the employees. He had never been
involved in the business side of the operation. He was a high school graduate but had never taken
business courses. Awang was told by Daud that even after deducting the percentage of the profits
he would owe under the sales agreement, he would be able to almost double his annual earnings.
Awang would have to take on all the business functions himself because Timah had no business
training either

Background of the Study

Alternatives

Statement of the Problem

Action Plan

Conclusion
Recommendation